Hiring a Contractor: What Documents and Formalities Do I Need to Know About?

Guidance on Hiring a Contractor

Please guide me regarding the formalities and documents required when hiring a contractor.

Regards,
Neeraj Singh
Executive - HR
Skipper Electricals (India) Ltd.

Dear Arnab, we are engaging with a labor contractor, so I just wanted to know which documents we have to check from the contractor. For instance, they should have the ESI registration, PF registration, etc. Please guide.

Regards,
NEERAJ SINGH
HR-Skipper Electricals (India) Ltd.

Dear Arnab,

We are engaging with a labor contractor and would like to know which documents we need to check from the contractor. For example, they should have the following:

- ESI registration
- PF registration
- PAN card
- Trade License
- Shop & Establishment certificate
- PF registration letter
- ESIC registration letter
- Professional Tax registration
- Service Tax registration
- Private Security Agency License if engaging any Security Agency for watch and ward service
- Labor Welfare registration
- A cancelled check for validation of the bank account.

These documents are necessary to engage the contractor. Additionally, you will need to collect other documents from the contractor to comply with all applicable statutory requirements. If you plan to engage contractors, you may consider using our expertise for contract staffing services. We have all the necessary statutory registrations and offer services on a pan-India basis.

Please guide.

Regards,
Neeraj Singh
HR-Skipper Electricals (India) Ltd.

As informed by Mr. Arnab Dasgupta, these documents are sufficient for engaging any contractor. The labor license under the CL(RA) Act is obtained after engaging the contractor. If the number of employees engaged is 20 or more, the Principal Employer (PE) has to obtain a Registration Certificate under the CL Act and issue Form-V to the contractor to obtain a license. If the contractor is engaged in construction activities, then either the PE or the contractor has to register under the BOC Act and pay CESS.

Thanks & Regards,
J.N. Varpe

Please guide me on the rules and responsibilities regarding recruiting for a contract position. Additionally, could you provide information on the pay components for this role?